Help Rebuild Frager's Hardware

By now I am sure most of you are aware of the four-alarm fire Wednesday evening that devastated Frager's Hardware -- a pillar of Capitol Hill for more than 90 years. If you're not then there is plenty of coverage in the Washington Post and The Hill is Home. Courtesy of Flickr User GarberDC

“We’ll come back bigger and better and stronger,” said John Weintraub, who runs the store. 

I sure hope so and I want to help. That's why I'm sending this email directing you to a couple different options to make a donation to help Frager's recover. GiveForward has a Frager's campaign up and running that has already collected more than $25,000 toward a $100,000 goal. The Hill is Home points readers to two not-for-profit organizations, Capitol Hill Community Foundation and Celebrate Capitol Hill that are accepting donations for the victims of the Frager’s Hardware Fire.

Whatever avenue you choose, I hope you decide to donate, whether it's money or time or simply good thoughts. We all count on Frager's on a regular basis and right now they could really use us.

Housing Market Improves Around America, Homes Flying Off DC Market

This week the National Association of Realtors (NAR) reported that existing home sales around the country were up more than a half percent in April to 4.97 million -- the highest since November 2009. The following day we also found that new home sales were up more than 2 percent in April, as CNN Money reported.

Better yet, we learned that the percentage of sales composed of foreclosures and distressed properties was down to 18 percent -- the lowest level since October 2008.

As the Wall Street Journal reported, "'That indicates the market is taking on 'a semblance of normality' as more sales occur under conventional conditions,' said Paul Diggle, property economist with Capital Economics.

"'The recovery is not dependent on cash buyers and investors snapping up cheap distressed homes, as many had feared," Mr. Diggle said. "That's an encouraging sign that the recovery will be sustained.'"

Homes sold in April were on the market for a median of 46 days, down from 83 a year earlier. Still, that seems like an eternity when compared to the median days on market in the Washington market where homes spent a median 11 days on the market in April.

Real Estate Business Inteligence, in conjunction with Urban Turf, put together a list of the zip codes in the area where homes moved off the market the quickest. We're talking four or five days! Check out the list to see where Capitol Hill ranks.

The good news is that inventory is increasing, albeit slowly, as sellers realize the opportunity presented. It's still their advantage, so NAR President Gary Thomas says, "...buyers must be both decisive and prudent. Advice with contract terms and negotiations is where the expertise of a Realtor^® shines for both buyers and sellers.” Read more at Realtor.org.

DC Residents Still Don't Want Skyscrapers

I wrote in November about the study requested to study the Height of Buildings Act of 1910 -- the law dictates that that the height of buildings on commercial streets in the District cannot exceed the width of the street by more than 20 feet and cannot exceed 130 feet overall.

The study is ongoing, but as Urban Turf reported this week, the public got its first chance to weigh in on possibly changing the act and the early (and unscientific) reaction seems to be a resounding no. “Please don’t disturb the skyline!” one pleaded.

The office of planning director present at the meeting attempted to quell resident fears, saying that Washington will never have New York or Chicago style skylines. The primary purpose of the study is to identify which parts of the city are of federal interest. Urban Turf reports that the questions they hope to answer include:

• If it were possible to add height to parts of the District, where would that be?
• Right now, the skyline is punctuated with federal structures. Could DC have room for private buildings in the skyline, as prominent landmarks?
• Which landmarks should be prominent?
• Which views are most important to protect?
• How would the National Mall, historic buildings, and major public spaces be impacted if the buildings surrounding them were taller?
• What the the economic impacts of height adjustments?

If you're passionate about this issue then there will be several more public meetings to attend or you can leave comments on NCPC’s site. I'll continue to keep you updated here.

Mortgage Rates Fall to Historic Lows

The average rate on a 30-year fixed mortgage fell to 3.4% in the week ended April 25, according to a report this week from Freddie Mac. That's down from 3.41% last week and darn close to the record low we hit last November and well below the 3.88% rates available in the same week last year.

The news is even better for those who can afford a 15-year fixed-rate mortgage as those rates hit a record low 2.61% this week, down from 2.64% in the prior week.

If you're shopping for a home then this may be the only good news you've heard in a while -- in the midst of stories about rising home prices and low inventory. But it could also be good news if you're already a home owner. 

First, you may be able to refinance and lower your payments drastically. However, if you're not in a position to refinance, then Michelle Singletary of the Washington Post has some advice for you. 

"There is a way to cut the amount you’ll pay in mortgage interest to achieve savings as if you refinanced," she writes. "HSH.com, which publishes mortgage and consumer loan information, has created two calculators for homeowners who are unable to refinance at today’s low interest rates."

The basic concept is to pre-pay a portion of your mortgage, if you can afford it, to pay down a bit more of the principal each month and reduce the amount of interest you'll pay over time. Here's the example they offer:

Let’s say you took out a $200,000 mortgage two years ago at 4.5 percent, which was the average 30-year fixed rate in mid-June 2011. You have an extra $200 a month you could apply to the mortgage principal.

Without prepayment, you will pay off your loan in 337 months (28.08 years). Total amount of interest you’ll pay: $147,819.88. With prepayment, you will pay off your loan in 244 months (20.33 years). Total amount of interest you’ll pay: $102,216.80. Your effective interest rate over those 244 months: 3.843 percent.

The site also has a calculator that allows you to enter your desired interest rate -- 3.4% for example -- and find out how much extra you'd have to pay each month to get to that effective interest rate.

These are useful tools to be sure, but clearly not everyone can afford to pay an extra $200 a month. There is not a one-size-fits-all solution when it comes to your mortgage payments. The lesson here is that there are various options that might be appropriate for your situation and the best way to find the one for you is to meet with a professional. 

I work with plenty of mortgage bankers and would be happy to put you in touch if you need advice.

DC Median Home Sale Price Soars to Record High

D.C.’s median sale price soared to a record high of $460,000 in March, the Washington Post reported this week. That's up from $405,000 in March 2012, an increase of 13.6 percent year over year, according to the data provided by the RealEstate Business Intelligence. 

The record prices, combined with historically-low inventory – the 6,289 active listings in March were down 4,200 from the same month a year ago and have dropped nearly 20,000 since their peak in the fall of 2007 – is more evidence that sellers currently hold the upper hand in the Washington real estate. 

As a result, homes are moving off the market at fast clip. The median days on market fell to 15 days last month, the shortest median days on market for any month since September 2005.  

So what's the takeaway? If you're thinking about selling then now is a good time. I'm offering a free seller workshop to give you the tools you need to take advantage of the favorable market.

If you're a buyer, it's not all bad news. The Washington Post also reported this week that 30-year mortgage rates fell to 3.43 percent.